Rising Stars: Key IPOs to Follow in the Near Future
Initial Public Offerings, commonly known as IPOs, serve as crucial indicators of stock market health, reflecting bullish or bearish investor sentiments. Following an unprecedented spike in 2020, the IPO landscape saw record-breaking launches, with 2021 witnessing a staggering 1,035 IPOs totaling approximately $142.2 billion. As we closed 2024 with 225 IPOs, nearly aligning with 2019's figures, 2025 has already introduced 62 new offerings despite seven withdrawals due to tepid investor interest. This year indicates a promising trail ahead, as the IPO count has surged by 88% compared to the same period in the previous year.
According to the latest IPO Market Outlook for 2025, it is projected that between $45 billion and $50 billion will be raised, a significant jump from the $29.6 billion raised in 2024. Below are three upcoming companies that retail investors should keep a close watch on.
CoreWeave Inc.
CoreWeave is an innovative cloud computing startup, emphasizing GPU technology that has recently garnered substantial media attention. Back in April 2023, the company boasted a pre-money valuation of $2 billion. Mid-2024 saw Core Scientific Inc (NASDAQ: CORZ), recovering from its bankruptcy, strike a monumental deal worth $3.5 billion with CoreWeave to develop AI infrastructure.
Operating as an infrastructure-as-a-service provider, CoreWeave allows clients to pay for essential computing resources. With the rapid rise of AI applications, particularly in demanding sectors like text-to-video generation, CoreWeave positions itself strategically within a burgeoning market. Goldman Sachs forecasts that AI data center occupancy rates could rise from 85% in 2023 to 95% by the end of 2026.
In February, CoreWeave made headlines by providing clients access to Nvidia's cutting-edge Blackwell architecture through the recently announced GB200 NVL72. The company currently manages around 250,000 GPUs spread across 32 data centers.
As of March 3rd, when the IPO filing occurred, CoreWeave reported a remarkable eightfold revenue increase in 2024, reaching $1.9 billion. However, it also faced a deepened net loss, escalating from $593.7 million to $863.4 million during the same period. Over 12 funding rounds, CoreWeave secured $14.5 billion, giving it a staggering valuation of approximately $35 billion.
This valuation projects CoreWeave nearly 18 times its revenue generation, highlighting the potential growth aligned with the reputable customer base it shares with larger tech firms, with Microsoft (NASDAQ: MSFT) contributing around 62% to its revenue.
Revolut Group Holdings Ltd.
Revolut, a prominent UK-based digital bank, focuses on merging digital assets with traditional banking practices. With three subscription tiers, Revolut offers around-the-clock banking services via its user-friendly mobile app, enabling lower international transfer fees compared to conventional banking options.
Having attracted over 50 million subscribers, the bank supplements its revenue through service fees and loan issuance, typically at a 6% interest rate. They announced an ambitious integration of an AI-driven assistant into their services set for 2025 and are also launching full mortgage products in markets like Lithuania, Ireland, and France.
Revolut plans to introduce its own biometric ATMs in Spain to enhance user experience. As reported in their 2023 annual report, delivered in mid-2024, the company generated $2.2 billion in revenue, marking a 95% increase year-over-year, alongside a net profit of $545 million before taxes for three consecutive years.
While currently holding an EU banking license, co-founder Nik Storonsky has hinted at future expansion into the US market. Presently, Revolut relies on Metropolitan Commercial Bank and Lead Bank for servicing US customers.
With its sights set on becoming the leading online bank globally, Revolut’s anticipated IPO valuation stands at around $45 billion, affirming its position as Europe's foremost fintech firm.
Medline Industries LP
Established in 1966, Medline Industries is a key player in manufacturing and distributing a wide array of healthcare supplies. The company's operations span various essential services, contributing to a stable revenue stream and prominence in the healthcare sector.
In 2023, Medline achieved $23.2 billion in net sales, maintaining an impressive 98% customer retention rate as a prime vendor over five years. According to industry insights, Medline’s IPO valuation is anticipated to reach approximately $50 billion, with expectations to raise about $5 billion upon its launch.
“Medline’s dominant position in the medical supplies industry is likely to draw increased attention towards forthcoming listings.”
Angelo Bochanis of Renaissance Capital
Employing around 43,000 workers, Medline stands as one of the largest healthcare employers in the nation. With the potential shift in manufacturing back to the US, there is optimism regarding an increase in demand for domestically produced medical supplies.
Frequently Asked Questions
What are Initial Public Offerings (IPOs)?
IPOs are the process through which a privately held company offers shares to the public for the first time to raise capital.
Why do companies go public?
Companies go public to raise funds for expansion, increase their market presence, and provide liquidity for existing shareholders.
What did CoreWeave achieve recently?
CoreWeave has significantly boosted its revenue and secured critical partnerships, positioning itself for a vibrant IPO.
How is Revolut expanding its services?
Revolut is integrating an AI-powered assistant and launching comprehensive mortgage products in multiple countries.
What is Medline’s position in the healthcare industry?
Medline is a leader in healthcare supplies, boasting a high customer retention rate and impressive sales figures.
